CHSCM 3.0 - Unit 1 - SCM in the Humanitarian World

Compliance and organization policy are similar, but different:
• Both are rules by which the
organization must adhere when
implementing programs and
executing the organization’s
mandate.
• Standard Operating Procedures
help both to be effectively and
efficiently applied throughout the
organization.
• Compliance is primarily externally driven,
by industry standards, public accounting
standards, or donor requirements;
organization policy, on the other hand, is
inherently internal.
• Organization policy is overseen by
management, where monitoring
compliance is often the responsibility of
Finance, or possibly of a department.
Documentation and record keeping are essential to ensure compliance. Where standards exist,
records must be maintained to demonstrate achievement. It is not enough to be compliant in
project activities; organizations and staff may have to prove that their activities meet applicable
standards as well.
Problems may arise at the time of internal or external audits if appropriate documentation
and records are not maintained.
It is much easier to file appropriate documentation than it is to try to build records after the fact,
potentially years down the line and after staff have moved on. Again, better safe than sorry!
Continued awareness of compliance throughout the project cycle is vital to its success. Key tasks
are identified below:
• Establish SOPs to include
compliance
requirements
• Include segregation of
duties, as appropriate
• Include minimum
standards and required
documents
• Document assessments
and analysis
• Document modality and
mechanism decisions
• Use transparent and
ethical procurement and
contracting processes
• Include data protection
clauses in SOPs,
tendering, and
contracting
• Use different staff
to distribute than
to monitor
• Separate duties during
payment authorization
and encashment
• Require proof of receipt
• File relevant
documentation,
including decisions and
reconciliations
• Participate in lessons
learned exercises and
ensure feedback on
learnings